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TAXATION
INTRODUCTION
The Government collects nearly $45 billion in taxes annually. Creativity in tax matters has centred on avoidance rather than the provision of incentives for export and economic growth or for increasing domestic savings.
While New Zealand First maintains its interest in protecting our nation's tax base we will apply taxation abatements, concessions and other incentives to activities that
contribute to increasing the rate of economic growth. For too long New Zealanders have accepted figures such as the projected 3% growth rate as being adequate while most of our trading partners continue to outstrip us.
New Zealand First will also continue to reform the taxation systems by simplifying processes, clarifying legislation, ensuring that the taxation laws of New Zealand are upheld, and that all-large corporate or private individual-pay their taxes.
New Zealanders deserve a good and fair tax system.
PLANS
New Zealand First will:
- upon achieving short term growth goals aim to reduce corporate taxation, beginning with a 20% tax rate for 'new exports' net income;
- remain opposed to any increase in general taxation;
- following the achievement of intermediate growth goals and focused social expenditure aim to reduce personal income tax levels;
- introduce an accelerated depreciation regime for specified industries and selected approved investments so as to assist business development;
- provide tax incentives for research and development;
- develop, in partnership with strategic cluster groups, a range of tax incentives for business activities which add value, create employment, provide export growth and/or new technology development. Such measures will include tax abatement on value added and 'start up' tax concessions;
- investigate a range of incentives to facilitate the growth of domestic savings;
- re-introduce the New Zealand First programme of applying an increasing proportion of petrol taxation to the development of New Zealand's transport infrastructure;
- ensure that the IRD's application of the compliance and penalties regimes are fair and equitable;
- reduce tax compliance costs by monitoring, evaluating (and amending as necessary) the measures introduced during our time in government. Priorities remain: streamlining of taxation analysis and preparation of returns processes; and making the tax system as neutral and equitable as possible;
- require that disclosure of tax schemes that affect the incidence of tax payable by more than $50,000, be mandatory;
- ensure that any failure to disclose (or the falsification of material facts) by a person experienced in taxation matters is treated as a serious criminal offence. If a sum of greater than $5 million revenue is involved, it will carry a maximum penalty of 10 years imprisonment;
- investigate the fairness of the local government rating system, including GST on rates, and in particular, on the non-service component of rates;
- explore the feasibility of a work-based superannuation scheme, including the use of fiscal incentives;
- provide a trade-off between tax cuts and the implementation of compulsory superannuation;
- explore the feasibility of using tax incentives to expand the take-up of private health insurance;
- put in place a tax regime which guarantees that overseas corporates are treated the same as New Zealand companies for tax purposes;
- protect our investment in Air New Zealand by ensuring its long-term viability by such measures as an accelerated depreciation regime on aircraft and tax incentives similar to those made available to Singapore Airlines by its Government;
- set up an inquiry to establish the best favourable fiscal regime for the shipping industry (a tonnage tax or alternatively a second register) to improve its viability;
- ensure that any trust that can demonstrate that the majority of membership is in the 19% tax bracket, can be treated like a Maori trust for tax purposes;
- help redress some of the injustices within the racing industry by an improved depreciation regime for stallions and brood mares, a tax advantage for on-course betting, and amend the taxation regulations that are patently unfair on the racing industry by putting all gaming on the same footing;
- establish a tax ombudsman to investigate taxpayer complaints; and,
- amend requirements and implement practices to enable the IRD to more appropriately remit tax liabilities or enter into arrangements for deferred payments.
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